Plan to put rail firm on track under review

• Kenya and Uganda to assess proposals by shareholders on running of RVR

A team of experts from Kenya and Uganda is reviewing various proposals on revamping the troubled Rift Valley Railways.

The company has been given a 25-year concession to run the Kenya-Uganda railway but has been experiencing boardroom wrangles and a financial crisis.

The proposals being reviewed have been presented to both countries by shareholders of RVR, the Joint Railway Commission said on Monday.

After examining the documents, the experts are expected compile a final report in the next two weeks.

Speaking on behalf of the commission, at Transport Permanent Secretary, Cyrus Njiru, said the governments of Kenya and Uganda will also hold consultations with the shareholders on various issues affecting the company.

“The shareholders presented several proposals on how to manage the company which we will be reviewing before coming up with a final decision,” said Mr Njiru, who is also the co-chair of the joint commission.

However, the joint commission was tight-lipped on the proposals the shareholders had presented.

Mr Njiru who was accompanied by Uganda’s deputy secretary in the Ministry of Finance, Keith Muhakanizi, said both governments have neither accepted nor rejected the entry of Citadel into the concession.

Citadel Capital – the Cairo-based private equity firm – is interested in the control of the 900-kilometre railway line between Mombasa and Kampala.

The wealthy Egyptians have a 49 per cent majority shareholding in Sheltam Rail Company of South Africa which controls 35 per cent of RVR.

Mr Muhakanizi also denied reports that Uganda was planning to exit the concession.

Rift Valley Railways has been running on losses since its launch in 2006. Last year, the company announced it had lost $17.5 million, blaming it on stiff competition from road and air transport.